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Catch Major Price Moves with MarketWizard App

Introduction

Perhaps what is interesting about the modern world is its rate of tech evolution and innovation. From light bulbs, cars, washing machines, telephones, and roughly 30 years ago, the groundwork was laid for the Internet.

The world has never been the same again. It was dubbed web 2, the publishing age, since anyone, anywhere could create content and “push” it to the other side of the world. The world became a village.

Fast forward and the 2010s brought us the blockchain. Seven years later, the concept of dapps took root. Dapps were ordinary applications whose back end ran on a distributed, smart-contract ledger. Ethereum is still the favorite.

With Ethereum, there is just more than what meets the eye. Yes, there is smart contracting and its middleman, eliminating automation which also fostered innovation. This innovation seeped into the restive financial industry and now we have decentralized finance, or DeFi.

DeFi: It is just the beginning.

DeFi is open finance where owners of ETH—or native currency of a smart contract’s platform say Cosmos (ATOM), for instance, can borrow or lend their holdings for a stable coin. DeFi has revolutionized traditional finance. And Ethereum is the base for this welcomed innovation.

But DeFi is not specific, it is all-encompassing, and they involve exchanges and lending apps. At the time of writing this, there were over $900 million worth of ETH locked up in DeFi applications.

Ethereum (ETH) Locked in DeFi dapps

The most popular is MakerDAO, where borrowers received DAI, a stable coin with ETH as collateral. Lenders in the meantime can earn above rate interest rates.

But DeFi can’t function without oracles, or portals that convey useful, reliable—and always vetted real-world, off-chain information, that can trigger smart contracts which also run DeFi apps.

Thing is, Ethereum and similar platforms require trusted oracle for valuations, settlements, and dispute resolution. And DeFi and developers need to resolve the “oracle problem” before there are other advances.

This is vital because should secure oracles that provide stable data feeds are compromised then DeFi as we know will collapse.

Otherwise, the closed-looped, self-contained nature of ordinary smart contracts won’t allow the full utilization of certain DeFi apps that may require external data for activation.

What is Tellor?

Providing a solution to this is Tellor. It is an Ethereum-based decentralized and secure oracle for DeFi dapps. Tellor is an easy, implementable solution through which DeFi dapps can receive high value data for smart contracts.

Their data feeds are stable and reliable because they make use of staked miners who compete through Proof-of-Work to submit official value for requested DeFi data.

TRBs are mined with each successful data point but a portion of it, 10%, is taken by the company for ecosystem development. This developer share goes to the treasury of the founding team to finance the team’s effort.

Tellor says this is necessary to “maintain a decent token price for profitable mining and a secure network” consequently aligning incentives between miners and Tellor’s founding team.

Tellor: Decentralized Oracle and a Hybrid Consensus Algorithm

Tellor is a project that was built from a need. Its creators had earlier created a startup, Daxia, a derivatives protocol on Ethereum, which required an oracle.

How Tellor (TRB) Decentralized oracle for DeFi dapps work

Daxia would create tokens that represented long, or short sides of a trading pair. To function, an oracle was required for smart contracts to be executed.

For their needs to be met, the team built Tellor, a decentralized oracle that fully met their needs.

Aware that DeFi has the potential of being a multi-billion industry, Tellor has built a network of staked miners where through Proof-of-Work, they can reliably channel secure and stable pricing data for the burgeoning industry.

The Tellor Oracle is an on-chain data bank where miners compete to add data points in return for rewards called “Tributes” or TRB. For miners, they earn a base amount of 5 TRB for every submission and tips as incentivisation.

Interested parties then pay Tributes to submit a request for data to their decentralized Oracle. The oracle then settles on a best funded query and creates a Proof-of-Work challenge for the miner to solve. Each query collects pricing data and makes it on-chain.

As another cushion of security, miners are required to stake their Tributes. To take part, a miner must stake 1,000 TRB. This is to dis-incentivize those who may want to game the system.

The combination of Proof-of-work, a gold standard in consensus, and staking gives the decentralized oracle an edge over competitors. Besides, there is quality since queries are made every 10 minutes.

Tributes is key to Tellor, and their work is to:

  1. Provide security by incentivizing miners and required for dispute resolution—charged as fees. They are also needed for staking.
  2. For the building of a striving and robust Tellor ecosystem and community. This is only achieved by ensuring continuous distribution of the token.
  3. Ensure a sustainable system.

Team

Tellor TRB team

Brenda Boya is the CEO and co-founder. She is an Ethereum developer and a former economist in the US Government. Before that, she was the lead developer and VP of Daxia.

Nicholas Fett is the CTO. He’s actively designing and developing a system for off-chain data access and validation on Ethereum. Before that he was the founder and CEO of Daxia.

Michael Zemrose is the co-founder. He describes himself as an expert in developing, communicating, executing, and sustaining strategic initiatives. Before that he was the Chief Strategy Officer at Daxia.

Partnership

Binance Labs, ConsenSys, and MakerDAO are investors and major partners.

Last year, they also partnered with Radar Relay, a P2P trading platform.

Tokenomics and Distribution

TRB, as aforementioned, is an Ethereum-based utility token that powers the Tellor system. Notably, they didn’t carry out an ICO. Instead, they opted for a developer share. 10% of miner rewards is diverted to the founders’ treasury.

“A dev-share allows us to get the necessary financing we need to create a sustained and secure oracle network, but only if we really deliver a cutting-edge product that’s needed. If we don’t, then the token value will plummet and there won’t be any interest in Tellor, be it miners or actual projects using the oracle.”

“So instead of the project dying while already having raised millions in dollars, we would be left without anything in hand and a failed project. This commitment and proper incentive are what we are after.”

At the time of press, the token is trading at $6.61 with a 24-hour trading volume of $226,265 according to streams from CoinGecko, a coin tracker.

At this level, the token is up 17% in 24 hours and 130% month-to-date. It is down 22% from its all-time high of $8.73 and 35X from its all-time lows of $0.18 registered on Nov 10, 2019.

Tellor TRB Price Action

There will be 1.05 million TRB tokens in total and 960k are already in circulation. The token’s market cap stands at $6,437,774 and is therefore ranked at 270.

TRB is actively traded on IDEX, where the TRB/ETH is the most popular trading pair drawing daily trading volumes of $74,994. Other supporting exchanges include Vitex, Citex, and Bilaxy.

Tellor TRB supporting cryptocurrency exchanges

Furthermore, TRB is available at Bidesk.

Short term Catalysts

  1. Tellor is a project created out of necessity. The team understands what they are trying to solve and their solution resonates well for DeFi dapp creators. As a reflection of their goals, the token soared 33X from its all-time lows of $0.18.
  2. The team tight-knit and experienced. Tellor executives were part of Daxia, a derivatives protocol based on Ethereum.
  3. Tellor has received investments from DeFi industry leader MakerDAO and Binance Labs.
  4. There are rumors that Binance DEX could list the token. Binance DEX is massive and is powered by Binance’s technology. Should they list, the token’s liquidity will increase and that is a net positive.
  5. The idea of giving up and opting for a developer share instead of an ICO reveals their true intention and urge to see the project blossom.

Long-term Catalysts

  • The amount of ETH locked up in DeFi platforms continue to rise. It recently surged past $1 billion mark. Supportive fundamentals from DappRadar further reveals that more people who interacted with blockchain experimented with Ethereum and specifically DeFi. This is huge and for a platform that serves DeFi dapps, it’s only a matter of time before they receive more investments from Fortune 500 companies and the likes.
Tellor Oracle Adoption cycle
  • Their emphasis of security and decentralization is attractive for purists, and over the long term and if DeFi blossoms, this will be a major talk point more so if there is exploitation of other oracle solutions. The security of the network is directly proportional to TRB market rates. The higher, the more secure the platform. Additionally, Tellor’s smart contract has been audited by CertiK.
  • TRB total supply is relatively low and fixed. There is no pre-mine. Tellor’s popularity will only mean more demand for TRB, and market forces will mean a repricing beyond the token’s all-time high.
  • Tellor can work on any chain with smart contracting capability. This means gathering cross-chain information is possible.
  • Development team is working on “creating a secure, scalable, and on-demand Oracle to help smart contracts achieve their true potential.” Research on Zero-knowledge submissions to reduce gas costs and to prevent mirroring, and automatic reporting and monitoring is already been done.

Catch Major Price Moves with MarketWizard App

Catch Major Price Moves with MarketWizard App

Introduction

Finance. The world can’t function without it. Governments dedicate tons of resources to steady the ship whenever there is turbulence.

Amid the intervention, savers end up suffering. With the wave of easing from central bankers, savers are now earning less and less. In some instance, the reverse happens, savers pay bankers for safekeeping.

As bonkers as it may sound, that’s the reality on the ground. And it’s about to get worse as the global economy hangs by the thread. But, there is a light by the end of the tunnel. Blockchain’s latest innovation, decentralized finance, or simply DeFi, is a viable and timely option for investors.

DeFi aims to decentralize finance and that means token owners can bypass middle men and trust the code of smart contracts. Smart contracts operate from an immutable, community preserved blockchain and is autonomous.

DeFi is broad and encapsulates applications as exchanges and lending. However, it is the concept of loans and lending that has picked up in recent times especially in platforms as Ethereum and Cosmos.

Interest in DeFi saw the total locked value of ETH spike above the $1 billion mark, a milestone, in February.

What is Kava?

Kava could be nascent, just like DeFi is, but offers an invaluable proposition.

At its core, Kava is a cross-platform DeFi platform which is based on Cosmos. As a result, it is interoperable with different blockchains yet secure and reliable.

Kava: How it Works

Kava is built on the Cosmos and Tendermint. This is the same technology that powers Binance Chain but the difference is that it is multi-asset and built from the ground up.

Like other lending DeFi applications common in Ethereum, users can borrow loans and lock up their crypto assets like Bitcoin (BTC), Ethereum (ETH), ATOM, BNB, and USDT, which act as collateral—or technically a collateral debt position (CDP), in exchange of the platform’s stable coin, USDX, which is algorithmically maintained.

CDPs anchor DeFi, and it is the same model that has been employed by the project’s founders. Meanwhile, KAVA is the platform’s native currency and can be staked for more gains. Holders of KAVA can participate in the network’s governance, voting for changes within the platform when needs be.

Simply, Kava is bringing DeFi to non-Ethereum holders and through the platform, they can earn interest from lending, participate in network security, and borrow against their collateral.

And it gets better.

Kava is built on Cosmos, an interoperable platform, and remains secure, stable, while promoting self-governance through KAVA.

Kava Token: Its Main Purpose

KAVA token serves three main purposes:

  1. It secures the network through validators who stake the coin in return for block rewards and transaction fees. Holders also benefit from burning of stability fees paid by CDP users. Many of these validators are Kava’s public partners.
  2. Stabilizes USDX peg. The coin is minted whenever the USDX–fiat peg is lost
  3. Governance since KAVA holders determine which proposals can be integrated and which parameters can guide loans and CDPs. Stability Fees, overcollateralization ratio, as well as voting for which assets to accept is decided by holders who can delegate their voting rights to validators or do so by themselves.

On a Deeper Level, Kava Functions as Follows:

To guarantee network stability and security, all rewards that are emitted per block are shared depending on the staking ratio by all network validators. Validators are like miners and aside from emissions, validators share transaction fees.

The amount of Kava received depends directly on first, the staking ratio mentioned above, the commission rate which are set by validators, and thirdly, the total transaction volumes. The higher the trade volumes, the higher the rewards received since it means more people/users interacted with the cross-chain DeFi platform.

At the moment, Kava issuance rate is at 6.33% but will fluctuate between 3% and 20% depending on whether two-thirds of the total coins in supply is staked.

For coin stability as aforementioned, the system automatically tracks collateral but concurrently incentivize liquidation of CDPs—collateral converted to USDX which tracks the USD, whenever collateral ratio falls below the minimum threshold.

However, should the slide of the price of collateral fall faster than the system can auction off pending CDPs, Kava is minted for the USDX—USD peg to hold true. In this case, Kava holders are liquidated.

Stability Fees will be paid in Kava tokens and destroyed. Burning reduces the supply of Kava tokens which in turn means holders of the token have an edge.

At launch, Kava Stability Fee was set at 5% per annum.

The Team

Kava Team

Kava was launched in 2017 and the team has expertise in blockchain, providing solutions for competing platforms as Tezos, Ripple, Tendermint, and MakerDAO amongst other leading projects.

Leading the team is Brian Kerr, the CEO. Before Kava, he advised Snowball–the world’s first smart crypto investment automation platform, and DMarket– a blockchain-based decentralized digital asset marketplace that enables publishers to create purchasable inventory of their digital items like skins, gold, and other in-game items.

Scott Stuart is the Product manager while Ruaridh O’Donnell is the co-founder and the Blockchain Lead.

Others include: Kevin Davis, the Lead Engineer, Denali Marsh, who is the software developer, Aaron Choi, the Head of Business Development in Asia, and Ticky Chen, the Marketing Manager.

Kava is advised by Robert Leshner, the CEO and Founder of Compound Finance. Compound is an open-source, autonomous protocol built for developers, to unlock a universe of new financial applications. Interest and borrowing, for the open financial system.

Advisors

Kava Advisors

Another advisor is Sunny Aggarwal, a research scientist for Cosmos, and Terry Chen, the VP of Engineering at Twine. At Twine he is responsible for an 18-person team and oversee all things technology: mobile, web, backend, infrastructure, quality assurance, system administration, desk side support, security, and compliance.

Noteworthy advisors include Jack Zampolin who is the Director of Product at Tendermint, Brian Fabian Crain, the co-founder of Chorus One, and Roderik van der Graaf, the Managing Partner, LEMNISCAP.

Partnerships

Kava Partners

Kava has collaborated with over 300 firms. Some of them are: Binance, OkEx, Ripple, Cosmos and Tendermint.

Ripple’s XPring, the investing wing of the $10 billion company that may IPO in the next year, has invested in Kava, and the platform now supports XRP as collateral.

Tendermint is the creator of Cosmos Hub and Cosmos SDK. ATOM is accepted as collateral by the platform.

Then there is Cosmos, BitMax, Cosmostation, Lemniscap, Coil, Chorus, Commun, and many others.

When announcing their partnership with Cosmos for example, Scott Stuart, the Product Manager, said he was thrilled and strongly believed in the importance of building a blockchain framework ready for mass adoption:

“Kava has admired Tendermint for a long time and believes in the importance of building a blockchain framework for mass adoption. We are thrilled to help Cosmos extend its reach to new markets, providing the ecosystem with access to new users, liquidity, and services.”

Tokenomics and KAVA Distribution

Kava was the 10th IEO on Binance Launchpad. Preceding this IEO were three Private Token Sales.

Combined, 40% of the total circulating supply of Kava tokens, at 100 million, were sold. During the first, second, and third private sales, each Kava sold for $0.075, $0.25, and $0.40, respectively.

Kava Token Crowdfunding: Private Sales and Binance IEO

The IEO price was sold at $0.46 and 6.52% of the total supply of Kava was sold raising $3 million. Only BNB was the accepted coin. It was done in Oct 2019.

As a result, token holders control 25 of the total supply while Kava Treasury has a 28.48% controlling stake.

  • 15% of all funds were used as follows:
  • 45% for Platform Development
  • 25% for Business Development and Marketing
  • 30% for Legal, Operations, and to cover miscellaneous costs
Kava Token Distribution

Kava is a BEP-2 token and has an inflation of 6.33%. Each coin is trading for $0.85 against the USD according to data from Coingecko. Most trading is from Binance.

Also, there are 102 million tokens in total supply but 87 million, or 85.12%, are bonded.

In addition, there are 90 validators but 84 are live at the time of press.Therefore, takes between 6 to 11 seconds to validate a block of transactions.

Tokens will be released depending on the amount staked by validators. The higher, the lower the APR rate, and vice versa. Maximum and minimum APR rates—dependent on staked amount stands at 20% and 3% respectively.

Eventually, by Oct 2022, all tokens will have been released.

Kava Market Performance

For private investors who got in at the first token sale, their ROI is at 12X in USD terms at market rates of $0.91.

Meanwhile, IEO investors have a 2X ROI.

Short Term Price Catalyst

  1. Kava team has the experience and the dedication needed to propel the project forward. Brian Kerr has previously worked in blockchain finance before his participation in Kava. Also, the Product Manager, Ruaridh O’Donnell, was a blockchain lead before joining Kava.
  2. In addition to this, the team is advised by Compound co-founder and other heavy weights who are directly involved in crypto finance or advise leading blockchain projects seeking to revolutionize finance.
  3. The projects liquidity continues to increase. Several months after crowd funding, the token is now trading at Binance and other exchanges including Bitrue, BitMax, and Gate, according to data from CoinGecko. However, the listing at Binance exposed Kava to high liquidity and investors.
  4. Binance now supports the deposit and withdrawal of Kava. A big boost considering the depth of Binance’s liquidity and their broad user base.
  5. Staking is also available Gate. Kava is a proof of stake coin and that represents another revenue stream aside from capital gains for holders. Besides, staking is also possible via Trust Wallet.
  6. They continue to market and an experienced content marketer, Sarah Austin, is the latest to join the team. Efficient dissemination of Kava-related news is crucial at this early stage. Content is also supplemented by the project’s executives’ live sessions and AMAs.
Kava Roadmap
  1. Kava is steady and adheres to their roadmap. They have since released a CDP system and developers continue to submit commits at GitHub. This is a mark of participation and community, a vital element in crypto and blockchain.
  2. Several blockchain explorers have been built by the community for coin tracking. With the ability to track transactions, user experience is improved, a net positive for the project.

Long Term Price Catalysts

  1. The concept of cross-chain DeFi is itself a massive idea. Amount of DeFi held in different apps is expected to rise in years to come as it becomes more popular. Already, over $900 million is held at different DeFi platforms according to stats from DeFi Pulse.
  2. Kava has the support of leaders including Ripple who invested in the project through XPring.
  3. Kava support different coins as ETH, Bitcoin, BNB, and even XRP as collateral, an opportunity for other users who would love to lend and borrow.
  4. Through USDX, users are shielded from market volatility as they can opt in and out between supported coins for the stable coin.
  5. The team governance is distributed and holders can vote should they want changes to terms of their CDPs and over-collaterization ratio for example.
  6. Kava’s community is growing and recently, the number of validators, mostly partner companies, rose above 150. This is the mark of distribution and a strength of governance.
  7. The project also plans to add other Synthetic assets including the Euro, JPY, and the Renminbi, a boost for Kava token. This is on top of increasing collateral assets needed when borrowing funds.

Catch Major Price Moves with MarketWizard App